European Commission Approves Aid for Former Nokia Employees

The European Commission has approved an application by Germany for financial assistance for the former Nokia workers laid off when the company closed its factory in Bochum. The funding will help the 1,316 most disadvantaged among these dismissed workers to return to employment. The total estimated cost of this package is €11.1 million, of which the European Globalisation adjustment Fund has been asked to fund €5.5 million.

"I am happy to put this application forward because it will help over 1,300 workers to return to employment," said Employment Commissioner Vladimír Š pidla. "In the context of the current financial and economic crisis, the employment situation in the affected areas is particularly vulnerable. I am glad that the affected workers can be supported by the safety net which the EGF can provide."

The application relates to 1,337 redundancies in the Nokia production plant in Bochum in the German region of North Rhine Westphalia after Nokia decided end production in this plant. The redundancies occurred in an area which traditionally has an unemployment rate of 3 to 4 percentage points higher than that of Germany as a whole.

There is a general trend amongst mobile phone manufacturers towards shifting production for mobile phones and accessories, mostly to 'emerging' markets in Asia. This is not only because mobile phones are cheaper to produce there, but also because of the proximity of the fast-growing consumer market and of technology partners. Despite this general trend, the EC commented that the redundancies at Nokia Bochum were unforeseen, as in 2007 operations were said to be profitable.

The package of EGF assistance for the ex-workers of the Nokia production plant in Bochum will include basic and specific qualifications, entrepreneurship support, group qualifications and peer groups, support at the start of employment and aftercare, short-time allowances and support for international job applications.

The application will now be put before the European Parliament and the Council of the European Union for decision. The application was submitted to the Commission on 6 February 2009.

The Nokia application is the third concerning the mobile phone sector approved by the Commission for presentation to the European Parliament and the Council. Other applications relate to the automotive sector, textiles, electrical equipment, computers and domestic appliances.

Posted to the site on 3rd August 2009